Hugo Boss confident on hitting full-year targets

UlrikeDauer

FRANKFURT--German fashion company Hugo Boss AG (BOS.XE) said Wednesday that a strong performance in the fourth quarter will help it achieve targets for the full year, adding that it is confident that growth will continue this year despite a difficult trading environment.

According to preliminary figures, group sales rose 5% in the fourth quarter to 684 million euros ($778.3 million) and by 6% to EUR2.57 billion for the full year.

Operating profit increased up 6% to EUR167 million in the final quarter and by 5% to EUR591 million for the full year.

Full-year pretax profit was up 1% to EUR437 million, hit by a EUR19 million charge related to the early cancellation of a contract with a sales agent in the Middle East and the consolidation of production facilities.

Growth in all regions contributed to the improvements. Sales in Asia Pacific and Europe rose more than the average for the group, although the performance in Europe slowed over the course of the year despite double-digit percentage growth rates in the U.K. and Spain. The rise in sales also more than compensated a narrower gross margin and higher operating costs, Hugo Boss said.

The group will announce audited financial results and a dividend proposal in March.

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